Discover Why the 20-Mill Floor Causes Your Taxes to Soar with Rising Property Values | Opinion

In Ohio, a significant yet overlooked issue known as the “20-mill floor” is influencing property taxes. This policy was initially established to protect taxpayers from skyrocketing taxes during real estate booms. However, it is now contributing to rising tax burdens in certain school districts.

The Origins of the 20-Mill Floor

The concept of the 20-mill floor originated in the 1980s. This legislation allowed school districts with General Fund taxes below 20 mills to bypass tax rollbacks enacted by House Bill 920. This rollback was designed to prevent local governments and schools from receiving unapproved tax increases as property values rose.

Effects of House Bill 920

House Bill 920, passed in the mid-1970s, aimed to maintain a balance between increasing property values and taxpayer expenses. In summary, the bill ensured:

• Taxing entities did not receive more funding than approved by voters.
• Taxpayers avoided significant tax hikes during real estate appreciation.

How the 20-Mill Floor Changes the Game

The introduction of the 20-mill floor created a loophole. School districts not meeting this threshold could avoid the restrictions imposed by House Bill 920. Consequently, rather than advocating for new tax levies, districts could capitalize on rising property values without voter approval.

Case Studies of Local School Districts

In 2006, the Indian Hill and Oak Hills school boards attempted to lower their General Fund millage to fall under the 20-mill floor. Although the Indian Hill proposal was overturned by the Ohio Supreme Court, the Oak Hills adjustment was permitted. This led to unapproved tax increases for homeowners as property values increased.

Current Tax Concerns

Recent evaluations of property values in Delhi and Green Townships indicate an increase of 30% to 35%. Consequently, the corresponding property taxes rose by approximately 25%. This trend highlights the unfair burden placed upon residents while school districts receive additional funding without voter consent.

Potential Solutions

As Oak Hills seeks a new bond issue to replace an expiring levy, residents must consider the long-term impact of the 20-mill floor. Declining this new levy could potentially reduce taxes and restore some balance. Without a change, the trend of unvoted tax increases may continue indefinitely.

Call for Awareness and Action

Raising awareness about the 20-mill floor is crucial. Many residents are unaware of why their property taxes are rising faster than inflation. The ongoing discussions among legislators often sidestep the core issue, focusing instead on complex proposals that fail to address the fundamental problem.

• Understanding the 20-mill floor could lead to meaningful legislative changes.
• Engaging in discussions about removing this exemption can help alleviate future tax burdens.

As Ohio contemplates reform, taxpayers may find themselves at a crossroads, faced with either accepting the current tax structure or advocating for significant changes. Only through collective awareness and action can the community hope to regain control over property tax increases.